The Governor has scheduled a ceremonial signing for Wednesday, March 19 at 9:00 a.m. in the Old House Chamber in the Capitol.

Enactment of TBOR II, an update of the original 1992 TBOR law, has been a significant goal of the business community. Its enactment is the statutory confirmation of efforts of dozens of individuals and organizations seeking the establishment of a tax tribunal independent of the Alabama Department of Revenue.

"Many individuals both in the Legislature and outside of the voting chambers of the State House have worked tirelessly to push TBOR II over the goal line," said Business Council of Alabama President and CEO William J. Canary. "The credit goes to our many Business Association Tax Committee members, association supporters, and BCA members who reacted positively to calls to action and who contacted their legislators to support TBOR.

"In addition, Governor Bentley deserves credit for showing his support early by saying that he would sign the legislation into law if presented to him," Canary said.

HB105 was introduced by Rep. Paul DeMarco, R-Homewood, it passed the House and was handled in the Senate by Sen. Bryan Taylor, R-Prattville. On Feb. 27, the Senate passed a substitute HB105 by a vote of 26-0. The House concurred 94-1 on March 4.

The legislation establishes the Alabama Tax Tribunal, abolishes the ADOR's Administrative Law Division, and transfers its personnel and functions to a newly formed, independent executive branch agency. The ATT provisions are substantially similar to the American Bar Association's Model State Administrative Tax Tribunal Act, except that appeals from the ATT will continue to be filed with the appropriate circuit court rather than with the Court of Civil Appeals, according to attorney Bruce Ely of Bradley Arant Boult Cummings LLP.

An independent tax tribunal will increase public confidence in the system's fairness by resolving disputes between the DOR and taxpayers.

In HB105's Senate substitute by Sen. Paul Sanford, R-Huntsville, the governor can appoint at least one ATT judge but no more than three, depending on the work load, for six-year terms. At the end of each term, the governor may reappoint or appoint a new judge, and the governor may remove an ATT judge for "neglect, inability to perform, or malfeasance in office." Judges also may be removed or disciplined by the Judicial Inquiry Commission in the same way the JIC is authorized to remove circuit judges, Ely said. Taxpayers may appeal final assessments issued by or on behalf of self-administered cities and counties unless the governing body of the self-administered city or county opts out of the ATT.

The new law also makes several changes to the original 1992 act. 

Governor Robert Bentley on Tuesday signed the BCA supported Career-Technical Dual-Enrollment Program bill into law, opening the door to scholarship contributions for dually enrolled high school and two-year college students. The law took effect when Bentley signed it as Act 2014-147.

HB384 sponsored by Rep. Mac Buttram, R-Cullman, will expand the existing state-supported, career-technical education dual-enrollment program and allow businesses and individuals to contribute directly to scholarships to support two-year college programs. It will boost funding for technical training for dually enrolled students and certain tax credits would be granted for qualified donations.

The legislation is part of the Alabama Future Workforce Initiative supported by the Business Council of Alabama. The BCA believes the legislation will help students gain the skills and education that employers need in critical technical, biotech, high tech, and research fields.

"The business community in Alabama is, by far, the largest consumer of the product created by our state's school systems, so it is imperative that graduates possess the skills and education that the 21st century workplace demands," BCA President and CEO William J. Canary said. "Through career-technical dual-enrollment, students are ready to transition seamlessly into Alabama's workforce in a high-paying, high-demand job - in less than two years."

The bill authorizes a tax credit of 50 percent of a taxpayer's personal or corporate donation to a dual-enrollment scholarship program for high school students who take skill-training or academic courses at two-year schools, capped at $500,000 and not to exceed 50 percent of a taxpayer's income tax liability.

The legislation would authorize a scholarship fund of up to $10 million. Up to 80 percent of a donation can be earmarked to a school program. The $10 million will allow 9,542 new students to participate in Alabama's dual-enrollment program. In 2013, only 2,100 students, 6.7 percent of the eligible 31,500 students, could participate. 

The House Commerce and Small Business Committee on Wednesday conducted a public hearing on legislation that could increase Alabama's minimum wage to $9.80 an hour. Currently, Alabama does not have a minimum wage law but it adheres to the federal minimum wage of $7.25 an hour.

HB279, sponsored by Rep. Darrio Melton, D-Selma, proposes a constitutional amendment, which, if passed by both the House and the Senate, would go on statewide ballots for Alabama voters to consider. The wage increase to $9.80 would occur in three, 85-cent per hour increments on Jan. 1, July 1, 2015, and Jan. 1, 2016.

Business Council of Alabama President and CEO William J. Canary testified in opposition to the bill.

"The Business Council of Alabama works to protect Alabama's competitive edge nationally and internationally by opposing efforts to create a state minimum wage above the national minimum wage," Canary said. "The Business Council of Alabama strongly supports economic growth, industrial recruitment and job creation, which is a proven method of increasing prosperity for all Alabamians. We should instead be working together to create and expand high paying jobs and educating our existing and future workforces to fill these jobs."

If the constitutional amendment is approved, beginning Jan. 1, 2020, and every three years, the state's minimum wage would be increased by the same amount as the increase in the Consumer Price Index for Alabama. The bill also proposes that a tipped employee's wage may not fall below 30 percent of the minimum wage at any time.

Proponents said that the current minimum wage is not enough to keep up with the increase in the cost of living and that an increase in the minimum wage would reduce the number of welfare recipients.

If Melton's constitutional amendment becomes law, Alabama would have the second highest minimum wage in the country by Jan. 1, 2016. California is undergoing a three-phase increase to raise the minimum wage to $10 per hour by 2016.

The committee did not vote and Committee Chairman Rep. Jack Williams, R-Vestavia Hills, said the committee either will vote on the bill at its next meeting or assign it to a subcommittee for further study. 

Lt. Governor Kay Ivey today announced the appointment of Business Education Alliance of Alabama's Chairman and President Dr. Joe Morton to the newly formed Alabama Workforce Council. Lt. Gov. Ivey made her recommendation to Governor Robert Bentley during a ceremonial bill signing for the legislation that established the council.

LIEUTENANT GOVERNOR IVEY LAUDS BUSINESS INVOLVEMENT IN EDUCATION, ADDRESSES IMPACT OF MILITARY PRESENCE IN ALABAMA

Lieutenant Governor Kay Ivey at the Business Council of Alabama's March 11 Governmental Affairs Committee meeting addressed business involvement in education and the huge financial impact of the U.S. military's presence in Alabama.

Ivey, a former banking executive, served two terms as state treasurer and was elected lieutenant governor in 2010. She serves as presiding officer of the state Senate.

Ivey said the BCA and business community's historic involvement in education is helping reform it into a system that will produce high school students who are either employment- or college-ready.

"The most significant achievement in the realm of education is that of the business community impacting education," Ivey said "This is healthy and it's bringing about real and true education reform."

The BCA supports increased important successful education initiatives including First Class Pre-Kindergarten, the Alabama Reading Initiative, the Alabama Math, Science, and Technology Initiative, remote education access, dual high school and two-year college enrollment including its donation scholarship fund, and Workforce Development.

"People are making investments in students and 21st century jobs," Ivey said. "I've long said the most important factor in education is the business community, which hires the graduates."

Ivey also said, "Hats off for establishing the Business Education Alliance," created by the BCA as a partnership of business and education. "It builds consensus among state business leaders, lawmakers, and other government officials and interested parties around this state."

Turning to the military's significant financial impact on Alabama, Ivey briefed committee members on the Job Creation and Military Stability Commission created by state Senate resolution in May 2011. Ivey serves as its chair.

Ivey said the commission's goal is to protect Alabama's four military missions - the Anniston Army Depot, Fort Rucker, Maxwell-Gunter Air Force Base, and Redstone Arsenal - against cuts under future Base Realignment and Closure actions ordered by President Obama. Base reductions could begin in 2017.

"Their economic impact is $17 billion," Ivey said. "We're determined to maintain our military assets across the state."

She said President Obama wants to "shrink the Army's helicopter fleet by 25 percent," an event which would have a major impact not only on counties in the Wiregrass where the Fort Rucker Army helicopter training base is located but also all of Alabama.

She said the president also wants to reduce the number of Navy littoral ships from 52 to 36, which would significantly affect Austal shipbuilding in Mobile. "That's a huge impact on Alabama," she said.

Weekly BCA Governmental Affairs Committee meetings held during legislative sessions feature legislative and administration leaders who discuss topics of interest for committee members and receive updates on BCA activities.

Governor Bentley had also recommended a 2 percent pay increase at a cost of $75 million, which was changed by the Senate to a 1 percent bonus for K-14 educational personnel that would cost $34 million. But after the bonus concept was heavily criticized by legislators and AEA, the chair of the House Ways and Means Education Committee, Rep. Bill Poole, R-Northport, opted to add $48 million more than the Senate proposed to the educators' health insurance plan, PEEHIP, and cancelled plans to fund a bonus or a pay increase next year.

While the Senate-passed version put a heavy premium on repaying, by summer 2015, the $162 million balance still owed to the Education Trust Fund Rainy Day, the committee substitute added more funding to the classroom and shored up funding for the health insurance plan to minimize the need for educators to pay more out-of-pocket for their premiums. As a result, the committee substitute budget reduced the amount of the appropriation to the ETF Rainy Day from $62 million, as passed by the Senate to $27.6 million.

The committee substitute added nearly $5 million for school transportation and added $10 million more in addition to the $10 million added by the Senate to put an estimated 50 to 60 more teachers in the middle grades, where student achievement tends to wane. The committee substitute also restored $10.4 million in funding to Alabama State University which was cut from that institution in the Senate-passed version.

The 1st Class Pre-K program fared well in the committee substitute by retaining the $10 million funding increase that was recommended by Governor Bentley and which was included in the Senate-passed version. The Pre-K supporters can take nothing for granted at this point, but with the $10 million increase being included in all three versions of the education budget to date, its position appears very favorable. That increase is estimated to provide 100 additional classrooms and serve 1,950 additional Pre-K students.

The table below compares ETF funding for selected educational agencies and programs (In Millions $). 

The House on Thursday passed the patent trolling bill, which is supported by the Business Council of Alabama. SB121 sponsored by Sen. Arthur Orr, R-Decatur, previously passed the Senate 20-1. Because the House substituted and amended the bill, it must return to the Senate for consideration. The House version was amended to allow legitimate patent infringement claims.

The House on Thursday passed the school unfunded mandate constitutional amendment, voting 95-0 and sending it to the Secretary of State for ballot assignment. The constitutional amendment, SB7 sponsored by Sen. Dick Brewbaker, R-Pike Road, previously passed the Senate 33-0.

The legislation, if voters approve, would prohibit an unfunded mandate on any local school board without a two-thirds vote by the Legislature, or unless the Legislature appropriates funds or a local source of revenue for the mandate.

The landfill bill, HB292 sponsored by Rep. Alan Baker, R-Brewton, was considered and favorably reported by the Senate Commerce, Transportation, and Utilities Committee. There was extensive discussion regarding this bill followed by a commitment from committee members that the bill would not be considered by the full Senate until amendments are developed to address concerns. The House had passed the bill 88-09 and the Senate committee favorably reported the bill Wednesday on a 3-2 vote.

The bill would amend the Solid Waste law, Section 22-27-48 of the Code of Alabama, to require local governing bodies to affirmatively approve new permit applications for solid waste disposal facilities within 120 days, or the applications would be deemed denied. Prior to passing the House, the bill was amended to have the legislation apply only to new solid waste facilities where the earlier version also applied to permit modifications. The current law specifies that if a local governing body doesn't act on an application within 90 days, the application is considered approved. HB292 also would require that an applicant provide specific written documentation to be considered by the local governing body.